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Yahoo
14-07-2025
- Business
- Yahoo
US Apparel Imports From China Fell to a 22-Year Low in May Amid Trade War Escalation
Clothing imports from China fell to a 22-year low in May and were down by more than half (52 percent) from the same period in 2024 amid escalating tariff tensions between Washington and Beijing that have since resulted in a patched-up trade truce. For the first time in decades, China's share of apparel imports into the U.S. market dropped below 10 percent. May saw the sourcing superpower account for just 9.9 percent of clothing imports—a precarious plummet from the year-ago period, when China represented 19.9 percent of all apparel brought into the American market. More from Sourcing Journal Trump Announces 30% Duties on EU, Mexico Trump Hits Canada With 35% Tariffs Too Much Space, Too Little Demand: China-US Freight Rates Keep Crashing The May trade insights, compiled by University of Delaware professor of fashion and apparel studies Dr. Sheng Lu using U.S. International Trade Commission (USITC) data, revealed that tariff rates on fashion products (especially steep duties on China-originating goods) ballooned beyond levels seen in the modern era. As a result of the Trump administration's reciprocal tariff regime, the average tariff rate for U.S. apparel imports grew to 23.8 percent in May, up several points from the already record-setting 20.8 percent seen in April (and substantially higher than the 13.9-percent average rate in May 2024, and even the 14.7-percent rate of January 2025, before the president's second term began). China predictably faced the brunt of that burden for several weeks after a tit-for-tat spate of escalating tariff threats between President Donald Trump and Chinese trade officials. On April 9, the president set a 145-percent duty rate on China-originating products—an unprecedented measure that was reversed on May 12 when U.S. cabinet officials traveled to Geneva to meet with their Chinese counterparts and broker a truce that brought down the duty rate on both sides significantly. The duty hike had the effect of driving down apparel imports from China significantly, but those that did enter the U.S. market during May faced tariff rates averaging at an unprecedented 69.1 percent, up from 55 percent the month prior, 37 percent in March and 22.1 percent in January. Lu calculated the applied tariff rate on apparel by dividing the duty rate by the value of imports. All told, while the overall value of apparel imports decreased 7 percent year over year, import duties grew by almost 60 percent during the same time frame. 'In May, I think the most of the [average apparel tariff] increase was because of China. And for the rest of the world, they were charged a 10-percent universal tariff rate. Some products, especially those from Asia, were able to enter [the country] in May before the new tariff rate hit,' Lu said. Across the board, all countries paid more duties on apparel in May than they did in previous months due to the universal baseline tariff. Vietnam's average apparel import duty rate reached 25.9 percent, up from 20.5 percent in April, while Bangladesh saw a similar percentage jump from 17.8 percent to 21.1 percent month over month. India's average clothing tariff rate climbed from 15.8 percent to 20.1 percent, while Cambodia's increased from 19.7 percent to 24.6 percent. There were winners to be found in May, however, and their growing import values correlated with manageable tariff rates. Mexico, for example, saw its average import duties paid on apparel products decrease from a negligible 2.2 percent in April to 1.4 percent in May—nearly the same rate it paid one year ago. But Mexico's apparel import values jumped considerably year over year, by 12.2 percent. The country's apparel imports are covered by the U.S.-Mexico-Canada Agreement (USMCA), giving them duty-free access. However, the country still only accounted for 4.6 percent of U.S. apparel sourcing in May. The biggest players are still the Asian nations, many of which have received letters this week from the Trump administration regarding their new, double-digit tariff rates. They also faced threats against transshipment, or rerouting products from other countries with the goal of evading tariffs. Lu, like other experts, believes the reference may allude to the administration's intent to revisit of content requirements and Rules of Origin, as true transshipment of finished goods is already illegal. In his view, 'The signal is very clear—the Trump administration not only wants to decouple from China, but it wants Asian countries to decouple their supply chains from China.' But the Trump administration's long-held goal of encouraging Asian nations to abandon China as a partner 'does not appear to be realistic, at least in the near to medium term,' with so much dependence on the country for inputs, he said. For example, Organisation for Economic Co-operation and Development (OECD) data from 2020 (the latest year for which insights are available) showed that about 55.4 percent of the value of Vietnam's textile and apparel gross exports contained content added from other countries—including 26.6 percent contributed by China. UNComtrade data was even more stark, showing that China accounted for 63.8 percent of the $16.6 billion in textile imports to Vietnam in 2023, a 'notable increase' from 37.4 percent in 2010. Like other developing countries with limited capabilities to manufacture certain fabrics and components, Vietnam still relies on imported raw materials. Meanwhile, the country represented the biggest apparel supplier to the U.S. in May, accounting for 21.7 percent of clothing imports. Limiting or discouraging access to the imported raw materials needed to produce apparel products could easily threaten Vietnam's stability as a sourcing base, Lu believes. The same is true for many of America's current top suppliers, which in May included Bangladesh (which accounted for 9.7 percent of U.S. apparel import market share), Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) countries (10.4 percent), India (8.2 percent), Indonesia (5.1 percent), Cambodia (5.2 percent) and U.S.-Mexico-Canada Agreement (USMCA) members (5.5 percent). As companies brace themselves for the impact of the incoming duties, they're caught between a rock and hard place. 'Even though the situation between China and the U.S. has stabilized, and there's a deal out there, companies still see sourcing from China as having huge risks,' Lu said. 'They want to source from more countries, but they remain mainly looking at Asian countries, because they need these sourcing designations to be ready to provide products immediately.' There are 'not too many options' in terms of mature sourcing markets with the capabilities and capacity to take on production at scale, aside from 'second-tier emerging sourcing destinations in Asia' that are tight with China and about to be hit with steep duties themselves. Lu believes that despite those conditions, companies will continue to move into sourcing locales like Vietnam and Bangladesh, with the hope that more beneficial trade terms might be reached. 'They are developing countries, they don't pose any national security threat toward the U.S., and they're not the focal point of Trump's trade policy,' Lu said. 'So there's a hope that some kind of deal can be reached before the August deadline.' Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Time of India
28-05-2025
- Business
- Time of India
Brent at $50, LNG at $7, 4 mt aluminium demand lost—Tariff tensions could reshape energy and metal markets
New Delhi: Global trade tensions could significantly impact energy markets with oil demand varying by up to 6.9 million barrels per day (b/d) by 2030, depending on the severity of tariffs and geopolitical conditions, Wood Mackenzie said in a report. The energy consultancy outlined three scenarios—Trade Truce, Trade Tensions and Trade War—in its latest report titled Trading cases: Tariff scenarios for taxing times. These scenarios examine the potential outcomes for global GDP, oil and gas prices, metals demand and power sector investments. 'In the Trade Truce scenario, oil demand reaches 108 million b/d by 2030, with Brent averaging US$74/bbl,' the report said. Under the Trade War scenario , oil demand declines after 2026 and Brent crude drops to US$50/bbl. Alan Gelder, Senior Vice President, Refining, Chemicals and Oil Markets at Wood Mackenzie, said, 'Falling oil demand results in the global composite gross refining margin collapsing to break-even levels, creating pressure for the rationalisation of weaker sites, particularly in Europe.' In the global LNG market, the Trade War scenario could intensify the projected oversupply. LNG prices are projected to fall from US$11.2/mmbtu in 2024 to US$7.2/mmbtu by 2030 in the Trade Truce case. Prices may fall further under a Trade War due to reduced Chinese demand and tariffs diverting US cargoes. 'Although tariffs pose downside risks to global LNG supply, it is possible there will be more investments in US LNG,' said Massimo Di Odoardo, Vice President of Gas and LNG Research. The power sector could also be adversely affected by trade uncertainty, particularly in the development of battery storage and renewable technologies. 'Unpredictable project costs are disrupting long-term strategies, particularly in battery storage due to China's supply chain dominance,' said Chris Seiple, Vice Chairman, Power and Renewables. For metals and mining, aluminium demand may decline by nearly 4 million tonnes and copper by 1.2 million tonnes in 2026 under the Trade War scenario, the report noted. Julian Kettle, Vice Chair, Metals and Mining at Wood Mackenzie, said, 'Even in a Trade Truce scenario, we foresee supply issues, while a tariff war could wipe out all projected growth through 2026.' The report concludes that despite recent trade agreements, significant risks remain. Gavin Thompson, Vice Chairman, Energy, Wood Mackenzie, said, 'Lower economic growth will curb energy demand, prices and investment, while higher import prices will raise costs in sectors from battery storage to LNG.'
Zawya
16-05-2025
- Business
- Zawya
European shares set to cap strong week on upbeat earnings
SYDNEY/GDANSK - European stocks looked set to cap a strong week with gains on Friday, as upbeat earnings helped sustain the rally sparked by a U.S.-China trade truce, while oil prices remain relatively low, further supporting stocks and bonds. It has been a positive week for global share markets as investors cheered a tariff truce between the United States and China that greatly reduces the risk of a global recession. Europe's STOXX 600 rose 0.57% on Friday, and was up 1.6% on the week, set for its fifth straight week of gains, helped by luxury group Richemont's 7% climb after it reported strong quarterly sales. MSCI's main gauge of Asia-Pacific stocks ex-Japan rose more than 3% this week, and the S&P500 is up 4.5% so far, with futures pointing to further gains at Friday's open. The U.S. data calendar is lighter for the rest of the day, though there will be the University of Michigan consumer sentiment survey and U.S. import prices data for April. However, there was enough uncertainty to keep investors cautious heading into the weekend. "The markets confront a weekend with less risk of carrying open positions than last, with no major trade talks or significant risks on the calendar," said Kyle Rodda, senior analyst at "However, there is always a slight risk-off bias going into the weekend during a Trump presidency, with a nasty downside surprise at the Monday open only ever one social media post away." Oil prices have been choppier this week, rising on the U.S. China deal, before falling sharply on Thursday on increased supply pressure from an OPEC+ output hike and the prospect of an Iranian nuclear deal. Brent futures were down slightly on Friday after a 2% Thursday fall, and were set to end the week just 0.8% higher. Oil prices - low by recent standards - are helping support expectations that inflation is easing, as did U.S. data from Thursday, which did not show any dramatic impact from U.S. tariffs, helping both shares and bonds. U.S. core retail sales were soft and the producer prices fell unexpectedly in April, as markets added to the bets for a total easing of 57 basis points from the Federal Reserve this year, from 49 bps before. "The relief from softer U.S. retail sales and PPI was palpable in the bond market yesterday and overnight," said Kenneth Broux, head of corporate research FX and rates at Societe Generale. "This poured cold water on the (global) bond sell-off and put the brakes on the hawkish repricing of the Fed outlook." The benchmark 10-year Treasury yield fell 4 basis points to 4.41%, extending a 7-bps drop overnight, and euro zone government bond yields also slid. Of course, it might be just a matter of time before the tariff impact starts to show up in the hard data. Walmart , the world's largest retailer, said it would have to start raising prices later this month due to the high cost of tariffs. Lower U.S. yields left currency traders selling the dollar, if not too dramatically. It was last down 0.27% on the yen at 145.3, while the euro was 0.12% higher at $1.1198. In precious metals, gold prices fell 1.23% to $3,200 an ounce, after rallying 2% overnight. For the week, they are down 3.7%.
Reuters
14-05-2025
- Business
- Reuters
European shares flat as gains from US-China truce pause
May 14 (Reuters) - European shares opened flat on Wednesday as investors took a breather after gains seen earlier this week following the U.S.-China trade truce, while key inflation data from Germany was also in focus. The continent-wide STOXX 600 index (.STOXX), opens new tab was unchanged at 545.31 points as of 07:10 a.m. GMT. The benchmark had logged its fourth consecutive session of gains in the previous session on Tuesday. The week began on a firm note after Beijing and Washington agreed to a 90-day pause on most of the tariffs imposed on each other in April, sparking optimism that a global recession from the trade war may be averted. Meanwhile, data showed German inflation eased further to 2.2% in April, confirming preliminary figures, while Spain's European Union-harmonised 12-month inflation rate fell to 2.2% in March from the period through February. Among individual stocks, luxury firm Burberry (BRBY.L), opens new tab topped expectations as brand sentiment was improving. Its shares were up 7.9%. German chemicals distributor Brenntag ( opens new tab fell 3% after it reported a lower-than-expected quarterly core profit. Vestas ( opens new tab rose 1.2% after Berenberg raised the wind turbine maker to "buy" from "hold"
Reuters
13-05-2025
- Business
- Reuters
European stocks extend gains for fourth day, Bayer soars
May 13 (Reuters) - European stocks edged higher on Tuesday, as positive corporate updates helped keep markets at a six-week high, a day after the United States and China announced a truce in their trade spat. The continent-wide STOXX 600 index (.STOXX), opens new tab rose 0.2% by 0732 GMT, rising for a fourth straight session. Global stocks surged on Monday after Beijing and Washington agreed to a 90-day pause on some of the hefty tariffs imposed earlier in April. Among single stocks, Bayer ( opens new tab jumped 10.8% after it posted a slower decline in first-quarter adjusted earnings than the market had feared as strong prescription numbers for new drugs offset a drop in its soy and cotton seed business. Shares of renewable energy firms Vestas ( opens new tab and Orsted ( opens new tab and Portugal's largest utility EDP ( opens new tab soared, with traders pointing to better-than-expected U.S. proposals for the reconciliation bill. Germany's largest reinsurers, Munich Re ( opens new tab and Hannover Re ( opens new tab, dropped 3.9% and 3.4%, respectively, after they reported sharp declines in first-quarter profit after a combined 1.7 billion euros ($1.89 billion) in claims relating to the Los Angeles wildfires this year.
